Hidden Gems: Meet Rocky Mountain MicroFinance Institute

Today we’d like to introduce you to Rocky Mountain MicroFinance Institute. Them and their team share their story with us below:

Rocky Mountain MicroFinance Institute (RMMFI) is a Denver-based nonprofit serving local entrepreneurs, and the development of the organization has been an entrepreneurial adventure in and of itself. In 2007, one of RMMFI’s Co-Founders, Rob Smith, began working for a Denver-based microlending nonprofit. The nonprofit was nationally recognized in the industry, but it suddenly collapsed in June 2008 due to mismanagement. Within two weeks, the board of directors had opted to dissolve the company, leaving 750 entrepreneurs without support and over $1 million in loans outstanding. 

Even though Rob had only been with the nonprofit for a year, he was committed to finding a better way to realize the potential of microfinance to impact communities. Rob and three other employees offered to service the outstanding loans, and the four of them launched a new and improved nonprofit known as Rocky Mountain MicroFinance Institute on August 10, 2008. 

In the early months of the organization, the RMMFI founders had to work tirelessly to rebuild trust in the community and prove to funders that RMMFI would be different from the nonprofit it was replacing. While challenging, that work proved foundational for the organization, and the relationships forged in those first few months are still some of the strongest RMMFI has to this day. 

RMMFI became certified as a Community Development Financial Institution (CDFI) by the U.S. Treasury Department in 2010. From the beginning, the organization has filled a unique space in the microfinance industry. A core part of RMMFI’s approach has always been ensuring that capital meets capacity by integrating capital at strategic points within its holistic and intentional business support programming. At the time RMMFI was established, organizations offering financial education and mentorship as well as a loan fund were rare, and this Capital Meets Capacity model continues to set RMMFI apart today. 

RMMFI began by offering elective programming, which was very popular during the Great Recession in 2008. However, the founders noticed that not many people participating in the programs were accessing the loan fund or actually launching their businesses, so there was minimal impact. After this realization, they transitioned to focusing on small cohorts of entrepreneurs and offering increasingly personalized support, a change that was well-received by community stakeholders. Nearly 14 years later, RMMFI has graduated over 40 classes of its longest-running cohort program, Business Launch Boot Camp. 

Would you say it’s been a smooth road, and if not, what are some of the biggest challenges you’ve faced along the way?
RMMFI was founded at the beginning of the Great Recession, and we have now supported entrepreneurs through two years of the COVID-19 pandemic. Both of those moments presented significant challenges and uncertainty for small business owners, and the impact fell disproportionately on communities that were already under-served and under-invested in. In both crises, government recovery efforts were inadequate and, in many cases, actually compounded economic weaknesses and inequities that already existed. 

Just as in 2008, though, RMMFI believes inclusive small business is the key to rebuilding and maintaining strength in our economy. We have leaned into these challenging moments to make the case for deeper investment in holistic entrepreneur incubators like RMMFI that can unleash economic potential across Colorado in a more inclusive and equitable way. 

In April 2020, we introduced our Entrepreneur Responsiveness Package to support entrepreneurs through the initial impact of COVID. Built with the input of entrepreneurs, volunteers, and community partners, this package provided both immediate assistance and longer-term support to help entrepreneurs navigate the new economic realities and emerge from the crisis stronger than before. We gave out $83,000 in cash grants, instituted a loan repayment holiday and 0% interest rates, and launched a Pivot Accelerator Program that included classes, mentorship, peer support, and $5,000 pivot grants. 

While we have transitioned to a virtual format, the demand for our programs and services has stayed strong throughout the past two years. New entrepreneurs have filled our Business Idea Lab, with COVID creating an opportunity to begin their entrepreneurial journey as they saw market opportunities that hadn’t existed before or decided they wanted more control over their future. We’ve been incredibly proud of the resilience and innovation of the more established business owners in our community, and we’ve introduced new programming like our Thrive Business Accelerator to make sure they have the tools and resources they need to continue growing and adapting. 

Despite ongoing economic challenges, we’ve seen that the entrepreneurial spirit is alive and well. Small business owners are driving the recovery as they always do, and RMMFI’s nearly 14 years of experience — as well as our own entrepreneurial spirit — has positioned us to create the enduring solutions to help individuals, businesses, and communities be successful in building the new economy. 

As you know, we’re big fans of Rocky Mountain MicroFinance Institute. For our readers who might not be as familiar what can you tell them about the brand?
RMMFI creates the space for communities and people of all backgrounds to realize their unique potential through the power of entrepreneurship. We invest in entrepreneurs’ personal and business development through a proven mix of classroom, coaching, capital, and community. 

RMMFI is focused on serving resilient Coloradans ready for business ownership that have faced marginalization, societal barriers, low-wage employment, or high-barrier backgrounds. We know that, for many, the mainstream economy offers few opportunities for economic mobility and self-sufficiency, which is why we provide another solution: income and wealth generation through business ownership. 

Since 2008, RMMFI has supported the launch or expansion of more than 300 businesses in Colorado, 90% of which are owned by women and/or people of color. We have lent nearly $900,000 in over 300 loans with a 94% repayment rate. Graduates of our programs have businesses representing a healthy mix of products and services across a variety of industries such as food, auto, wellness, professional services, retail, and light manufacturing. 

Intentionally built along the Idea, Launch, and Thrive business incubator pathway, RMMFI’s programs help entrepreneurs build strong foundations in both their businesses and their lives. Our holistic approach brings people, businesses, and communities together to allow individuals to tap into the social and economic benefits of business ownership and create impact for their business, their household, and their community. 

As mentioned earlier, RMMFI strategically integrates lending into our holistic business support programming with our Capital Meets Capacity approach. As a certified CDFI and a trusted microlender, we make loans to invest in the economic opportunity of individuals and communities that are often left out of mainstream financial services due to income level, race, ethnicity, immigration status, criminal justice background, or other reasons. RMMFI’s loans are character-based, meaning we look beyond financial information to consider aspects like the entrepreneur’s involvement with RMMFI programs and mentorship, their growth as an entrepreneur, and their commitment to continuous learning and improvement. 

Another thing that sets RMMFI apart is our “Whole Entrepreneur” model. At the heart of every business is a person, and we believe that it is ultimately the strength of these individuals that leads to the creation of healthy businesses and vibrant, prosperous economies. RMMFI builds genuine relationships and deep trust with entrepreneurs, then provides the individualized tools they need to activate their unique potential. As a result, 95% of the entrepreneurs we serve report being on a positive life trajectory due to business ownership. 

While RMMFI started in Denver, we have expanded our footprint in recent years and are excited to continue growing to help more individuals and communities activate their potential. We now offer programming in Denver, Aurora, and the San Luis Valley, and we have a Spanish-language program in the Westwood neighborhood of Denver. We believe strongly in a community-centered, asset-based approach, and we’re proud to partner with trusted local organizations, including Re:Vision, Second Chance Center, and the First Southwest Community Fund as we continue to increase our reach and impact across the state. 

Before we go, is there anything else you can share with us?
If you are an entrepreneur who is searching for the tools and guidance to start or grow your business and who wants to be part of a diverse community of entrepreneurs, we encourage you to visit rmmfi.org/re-launch to learn more about the RMMFI journey. 

If you want to share your skills, expertise, and passion to support inclusive entrepreneurship in Colorado, visit rmmfi.org/volunteer to sign up for our volunteer opportunities. 

If you want to use your dollars to support diverse local businesses, visit rmmfi.org/business-directory for a list of over 200 RMMFI graduates. 

Contact Info:

• Email: info@rmmfi.org
• Website: https://www.rmmfi.org
• Instagram: https://www.instagram.com/rmmfi
• Facebook: https://www.facebook.com/rmmfi
• Youtube: https://www.youtube.com/channel/UCyMuFgxHWh-dgUVTjh8hG8g

Image Credits:
Anthony Camera Photography